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Plans to transform Caerphilly town’s Pentrebane Street as part of the council’s Caerphilly 2035 masterplan have been approved.

The street contains the former Caerphilly Indoor Market, which was bought by the council for £1.3m this year. It is set to be demolished to make way for the mixed-use development.

It could include 73 apartments – a mix of social rent, market rent and sale – as well as seven new commercial units.

It will be made up of three new buildings as well as new public spaces.

Housing association Linc Cymru will be behind the new apartments.

The “flagship” project is being funded by Caerphilly County Borough Council and the Welsh Government’s Transforming Towns programme.

Council deputy leader Jamie Pritchard, who is the cabinet member for regeneration, said the proposed development will be “an exemplar case study for future town centre developments and will help attract further investment for Caerphilly”.

He continued: “For a number of years, residents have talked about the need to redevelop the top end of town, so this is very much what we’re planning to do.

“We hope the plans approved will clearly indicate our ongoing commitment to transforming the town centre and stimulating economic growth.”

Siân Diaz, development director at Linc Cymru, said: “This decision by the council will lead to the transformation of this part of Caerphilly town centre.

“All of these features are going to bring a new vibrant feel to the area and give visitors another reason to come to Caerphilly.”

She continued: “The artist’s impressions are inspirational and show the confidence that we and our partners have in helping the town to thrive in the future.

“The last few years have seen big changes for many people in how and where they work. A co-working space on this site will provide more benefits and attract people to work and enjoy the surrounding shops, bars and restaurants.”